Need To Take RMDs This Year From Your IRA? You Can Chill. We’re On It.

You can chill. We’ve got the RMDs under control.

What’s at the top of our to-do list this month?

It’s time to take care of RMDs (Required Minimum Distributions) from your IRAs if you’re age 70½ or over, or are the beneficiary of an Inherited IRA.

What’s the deal?

We’ve already alerted clients who need to start their RMDs IRA next year. There’s nothing you need to do now. We just wanted to give you a heads-up for next year.

And if you need to make RMD withdrawals this year, you can chill. We’ve got it.

We’ve already calculated your IRA withdrawal amount and are taking care of the arrangements.

What are the options?

Some clients ask us to take withdrawals a little bit each month. If this is your case, you’re already on target to meet your required withdrawals.

For most clients, we take the entire required withdrawal once per year. We anticipate completing that process in October or early November to keep your end-of-year stress at a minimum.

Charitably inclined? Some smart clients have asked us to make charitable contributions from their IRA accounts. That’s called a QCD (Qualified Charitable Distribution) and helps you minimize income taxes. If you’re thinking of doing one (and haven’t already), call us right away, as soon it will be too late for this year.

Speaking of taxes, when it comes to IRA withdrawals, we’ll customize your withholding arrangements based on your tax situation. You have the choice to withhold more, or less, depending on how much tax you should “pre-pay.”

The Takeaway: Don’t sweat the RMDs. Yes, they can be a little tricky, but that’s what we’re here for. We’ll make sure you keep your cool and skate through the RMD season without a hitch.

About Mari Adam

Mari Adam, Certified Financial Planner™ has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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